They insist on using AOL DSL, so to share the connection they have to use AnalogX Proxy instead of a "normal" wireless router. I got that up and running a year or so ago. But there have been glitches that I wasn't aware of until today.

Problem 1:
Firefox don't work. On either client machine. Weird DNS issue too that I had once before with other reasons (look around on this blog). Basically any site you went to would be the same site as the first. Example - home page is google.com, then I try to go to windowsupdate.microsoft.com and it is google again. Type microsoft.com/cgi-bin/whatever and you get a 404 from google.com saying "I don't have /cgi-bin/whatever "

OK, so the fix. AnalogX proxy cannot handle HTTP/1.1 - you need to do HTTP/1.0 only.

about:config
Find "network.http.proxy.version" and make it "1.0"

Problem 2:
Apparently, Microsoft in their infinite wisdom f'd up WindowsUpdate with SP2. The one machine worked fine. The other machine (brand new Dell laptop) didn't. So I update the other machine to SP2 and now it doesn't get WindowsUpdate either! Turns out that post-SP2 WindowsUpdate IGNORES THE PROXY SETTINGS YOU PUT INTERNET EXPLORER!!! What's the POINT?!?!

The fix: I'm not sure. There is a program "proxycfg" that sets up the proxy settings. I'm not sure which worked, one of these two (from the command line):

proxycfg -u

Supposedly updates the settings based on your IE ones. I'm not sure if that worked.
Other possible:

So then on the server you install the "kill_vms" with chkconfig (fix the IP from 192.168.90.201 to your virtual client IP of course!).

It won't work the first time you reboot, sorry. If you 'touch' the file /var/lock/subsys/kill_vms (at least on my ancient RH based system) then it should. Also, it will hang forever if you don't have the virtual machine set to 'Close on shutdown' and I think maybe another option in VMWare about closing if all clients close.